In recent hours, the meme coin market has experienced increased selling pressure after Bitcoin declined from its peak. The prices of Pepe and Shiba Inu have significantly dropped as both whales and short-term holders liquidate their holdings, leading to a sharp decline. However, analysts predict a strong recovery as buyers look to capitalize on the current dip.

Liquidations surge in the Memecoin market

As selling pressure increases in the cryptocurrency market, there has been a rise in long-position liquidations. According to Coinglass, Pepe has experienced a total liquidation exceeding $1.8 million, with $1.3 million attributed to buyers. Meanwhile, SHIB has seen a total of $763,000 in liquidations, with buyers accounting for $500,000 of that.

Data from IntoTheBlock shows that the trading volume of both Pepe coin and Shiba Inu has decreased in recent days. Specifically, the trading volume of Pepe whales has plummeted from a peak of $557 million to $176 million, while SHIB whale interest has dropped from $368 million to $156 million within a week.

This significant decline in whale activity has reinforced resistance levels, contributing to the sharp price drop. However, following notable gains after the election, the recent downturn may present a strategic buying opportunity. Therefore, analysts predict that the market will soon recover strongly.

Pepe price analysis

Pepe coin has experienced a price drop in recent hours, facing strong resistance at the $0.00002 mark. However, buyers are trying to stabilize the price at the 23.6% Fibonacci retracement level. Currently, Pepe is trading at $0.0000192, down more than 2.1% in the last 24 hours.

The downward trend of the 20-day exponential moving average (EMA) at $0.0000197, combined with the Relative Strength Index (RSI) in the bearish zone, indicates that sellers are in control. If buyers attempt to keep the price around $0.0000178, the PEPE/USDT pair has the potential to recover to $0.00002 and may extend to $0.000025.

On the contrary, if sellers try to push the price below $0.0000178, increased selling pressure may cause the price to drop to the 50% Fibonacci level of $0.000015 and possibly decrease to the 61.8% Fibonacci retracement level.

Shiba Inu price analysis

Although SHIB's price has recovered from a recent support line, it is still difficult to maintain above the $0.000026 level. As of the time of writing, SHIB is trading at $0.0000255, down over 0.6% in the last 24 hours.


To gain more profit, buyers need to push the price above the resistance threshold at $0.000026 to set the stage for a retest of the $0.000029 mark. A successful close above $0.000029 would complete the inverse head and shoulders pattern, potentially driving the price to $0.0000395 and reaching a target of $0.000047.

On the other hand, a price drop below the 200-day EMA would indicate that bears are in control. This could lead the SHIB/USDT trading pair to decline to the simple moving average (SMA) at $0.000022.